Total Government expenditure for 2011-12 is estimated to reach $371.1 billion, 22% up from 2010-11. Total Government revenue is estimated to be $375 billion, resulting in a surplus of $3.9 billion in the Consolidated Account.

Recurrent expenditure for 2011-12 will be $242.1 billion, an increase of nearly 8% compared with 2010-11, the biggest growth in the past 10 years.

Of the recurrent expenditure, 56.4% will be used in education, health and social welfare:
—Education: $54.5 billion, representing a 6% increase over the 2010-11 revised estimate.
—Social welfare: $42.2 billion, representing an 11% increase over the 2010-11 revised estimate.
—Health care: $39.9 billion, representing a 9% increase over the 2010-11 revised estimate.

Education

Set up a Self-financing Post-secondary Education Fund with a total commitment of $2.5 billion for the development of self-financing post-secondary education.

Inject $250 million into the HKSAR Government Scholarship Fund to extend the benefit to students of publicly-funded sub-degree programmes.

Provision of about $300 million a year for relaxing the income ceiling for the full level of student financial assistance under the means test mechanism. About 75 000 additional students at all levels of study will receive full assistance.

Provision of about $140 million a year for adjusting the existing tiers of financial assistance for post-secondary students so that those who pass the means test will receive more assistance. About 22 000 post-secondary students will benefit.

Provision of about $48 million a year for providing an additional grant of up to $1,000 each for eligible post-secondary students receiving grants for academic expenses. About 52 000 students will benefit.

Reserve $110 million for launching a three-year pilot programme in primary schools to provide after-school tutorial services for students from low-income families.

Allocate $100 million to launch a five-year mainland experience scheme for tertiary students. Over 30 000 students will benefit.

Social Welfare

Allocate $1 billion to extend the Elderly Health Care Voucher Pilot Scheme for three years and double the value of health care vouchers to $500 per person per year.

Raise the rates of Community Living Supplement under CSSA payable to severely disabled recipients and extending its coverage to benefit recipients with disabilities at non-severe level, recipients in ill-health and elderly people, benefiting about 190 000 recipients with full year expenditure of about $590 million.

Raise the CSSA standard rates for disabled/ ill-health recipients under the age of 60 to those applicable to recipients aged 60 or above in similar health conditions, benefiting about 55 000 people with full year expenditure of about $328 million.

Provide an additional 1 300 subsidised residential care places and 1 700 community care services places for the elderly, involving full year expenditure of over $200 million a year.

Implement the Integrated Discharge Support Programme for Elderly Patients on a regular and territory-wide basis. The number of elderly benefiting each year is expected to increase significantly from the current 8 000 to around 33 000, involving full year expenditure of $148 million.

Increase the supplements to subsidised residential care homes for the elderly and extend the coverage of the Dementia Supplements to all subsidised day care centres, involving full year expenditure of about $45 million.

Raise the purchase prices for EA1 places under the Enhanced Bought Place Scheme. These residential care homes will be required to provide physiotherapy treatment and rehabilitation training for the elderly. These measures will involve full year expenditure of $40 million.

Health Care

Provide an additional funding of $2.74 billion
to the Hospital Authority for meeting new and increasing demands, and implementing various healthcare service reform and related initiatives, including:
—Expansion of the coverage of the Hospital Authority Drug Formulary to enhance the efficacy of treating nine diseases;
—Enhancement of mental healthservices;
—Enhancement of chronic disease management;
—Shortening of the waiting time for specialist services; and
—Enhancement of public primary care services.

Reserve $1 billion for injection into the Health and Medical Research Fund to promote research and development in public health and medical services.

Allocate $31 million additional funding to strengthen the regulation of drugs, including the establishment of a dedicated office on drugs in the Department of Health.

Allocate $26 million to strengthen tobacco control, including $21 million for the provision
and promotion of smoking cessation services.

Community Building

Building safety: Further allocate $1 billion for Operation Building Bright to provide financial assistance to all eligible applicants.

Heritage conservation: Reserve an additional $500 million to subsidise more revitalisation projects for historic buildings.

Sports development: Set up a $7 billion Elite Athletes Development Fund to give more comprehensive support to elite athletes, and strengthen our efforts to identify and train young athletes with potential.

Art and culture: Allocate over $2.8 billion for the development of art and cultural software. Promote the long-term development of local art and culture with the investment return of the Arts and Sport Development Fund.

Reserve $150 million to keep rolling out the Enhancing Self-Reliance Through District Partnership Programme over the next five years and extend the maximum funding period to three years.